Which of the following explains the shape of the short-run aggregate supply curve?
a. The inverse relationship between the quantity supplied and the cost per
b. The direct relationship between the quantity supplied and the cost per unit
c. The direct relationship between the quantity supplied and the price level
d. The inverse relationship between quantity supplied and GDP
e. The inverse relationship between quantity supplied and the profit per unit
c
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The Phillips curve illustrates the trade-off between inflation and economic growth.
Answer the following statement true (T) or false (F)
Suppose that 50 hot dogs are demanded at a particular price. If the price of hot dogs rises from that price by 5 percent, the number of hot dogs demanded falls to 48 . Using the midpoint approach to calculate the price elasticity of demand, it follows that the
a. demand for hot dogs in this price range is unit elastic. b. price increase will decrease the total revenue of hot dog sellers. c. price elasticity of demand for hot dogs in this price range is about 1.22. d. price elasticity of demand for hot dogs in this price range is about 0.82.
Higher values of the Gini coefficient are associated with
A. less labor mobility. B. greater income inequality. C. greater labor mobility. D. greater education inequality. E. less income inequality.
Assuming no externalities exist, if a good's price is less than its marginal cost, then the benefits consumers derive are
A. greater than the cost of resources needed to produce it and less should be produced. B. less than the cost of resources needed to produce it and more should be produced. C. less than the cost of resources needed to produce it and less should be produced. D. greater than the cost of resources needed to produce it and more should be produced.